Legal Action Heats Up POSH Dispute

Published at 04:36PM - 06/04/16

Legal action heats up POSH dispute, as Makamin Offshore hits back with legal counter claims filed in the Saudi Arabian Courts.

The dispute stems from an alleged US$6.6 million of unpaid money owed to the Singaporean offshore vessel owners PACC Offshore Services Holdings (POSH Semco).

POSH claim that the money is owed to them, by Makamin Offshore, for the hire of three vessels, charges for meals, accommodation, as well as interest.

Legal Action Heats Up POSH Dispute

As part of its actions, POSH filed legal proceedings against Makamin Offshore, in the Saudi Arabian courts back in March.

Today Makamin Offshore have hit back, releasing a statement, claiming that not only do they deny all allegations, but they themselves have filed counter legal proceedings agains POSH, accusing them of fraud.

The statement read:

‘Makamin Offshore Saudi Ltd wishes to announce that it is vigorously contesting two sets of legal proceedings brought by Singapore-incorporated POSH Semco Pte Ltd in the Saudi Arabian courts.’

‘The Company takes the position that the law suits are without basis and POSH Semco is not entitled to seek from Makamin Offshore the sum of SAR 24.4 million, nor does POSH Semco have the right to enforce an expired agreement to novate certain sub-charters to a nominee. Makamin Offshore is vigorously contesting legal proceedings brought by POSH Semco and will take appropriate measures to defend its interests.’

‘Makamin Offshore has separately commenced legal proceedings in the Saudi Arabian courts to seek relief for “loss and damage caused by PACC Offshore Services Holdings Ltd and certain of its subsidiaries arising from various breaches of contractual obligations as well as other obligations under Saudi laws.’

‘Makamin Offshore has already taken steps to ensure that its day-to-day operations remain unaffected by the disputes with PACC Offshore and POSH Semco, and the Company remained committed to its aspiration to becoming a leading offshore oil and gas player in Saudi Arabia and the Middle East.’

POSH Offshore Tug Vessels
POSH Offshore AHTS Vessels

Fraud Accusation

The Makamin statement concluded:

‘The Company has filed a complaint against POSH Semco in Saudi Arabia for suspected falsification/forgery by POSH Semco of a time charter party with Makamin Offshore and the said complaint has since been passed to the relevant Saudi governmental authorities for investigation. Makamin Offshore also expressed that it would be prepared to assist Singapore authorities if they decide to investigate that matter.’   

‘The Company will continue to provide updates from time to time on any further material development on this matter.’

POSH Statement

Almost immediately, POSH hit back, releasing a counter statement to Makamin’s counter statement saying:

‘The Company has been made aware that Makamin has claimed on its website that it has made a complaint in Saudi Arabia against PSPL in relation to a time charter party with PSPL.’

‘To date, neither PSPL nor the Group has received any formal charges on any such complaint. The Company believes that Makamin’s statements are a reaction to the legal actions that PSPL has already commenced against Makamin as referred to above, and that Makamin does not have any basis for any such complaint against PSPL.’

Before concluding: ‘In any event, the Company intends to vigorously contest and defend against any charge or allegation made against PSPL by Makamin and will take all steps necessary to protect its reputation, its interests and the interests of its shareholders.’